INTERIM PENSION STUDIES. Lege Trend: Pension Funding Requirements in a State Constitution

Which state is contemplating pension funding thresholds be constitutional? New Jersey

What would the pension constitutional amendment require? 

• That the Legislature make full pension payments
• That pension payments must be made quarterly

What are the arguments against constititional pension requirements?

• tie the hands of legislators
• legislators need flexibility for balancing the annual budget
• the pension problem is complex since pensions have not been fully funded in New Jersey since 1997
• we don’t know what crisis might exist year to year and requiring billions come off the top to fund pensions, could harm new Jersey during crisis
• Illinois did this 46 years ago and today Illinois has the worst pension crisis in the country
• It will lead to tax increases that will hit business, and hit small businesses the hardest

New Jersey Business | Keep Pension Funding Out of the Constitution